DTN Midday Grain Comments 06/05 11:09
Grains Mixed at Midday
Corn is 1 to 2 cents higher, soybeans are 1 to 2 cents higher, and wheat is
8 to 9 cents lower.
David Fiala,DTN Contributing Analyst
The U.S. stock market is sharply higher with the Dow 1000 points higher. The
dollar index is 8 points higher. Interest rate products are weaker. Energies
are firmer with crude up $1.60. Livestock trade is mixed with hogs leading.
Precious metals are lower with gold down $44.
CORN
Corn trade is 1 to 2 cents higher with trade holding the upper end of the
recent range but lacking the spark to take out the overhead resistance levels
so far. Ethanol margins remain stable with improvements in driving demand so
far this week and energy strength on further OPEC cuts with unleaded up a
nickel. Warmer drier weather for most is expected for the bulk of the week
before cooling next week with the west staying dry. Basis has been mostly
steady this week. On the July contract support is the 20-day at $3.20, and
resistance the fresh high at $3.31 which we are testing at midday.
SOYBEANS
Soybean trade is 1 to 2 cents higher at midday with trade looking to
consolidate the breakout going into the weekend with the real gaining vs. the
dollar this a.m., along with sales of 330,000 and 258,000 metric tons announced
to unknown. Meal is flat to $1.00 lower, and oil is 30 to 40 points higher.
South America continues to move soybeans on to the export market as harvest
winds down with the real gaining vs. the dollar. Crush margins remain solid for
the time being. The July soybean chart support is the upper Bollinger band at
$8.66 that we have surged above with resistance the $8.90 area that was earlier
spring high.
WHEAT
Wheat trade is 7 to 9 cents lower with selling pressure on the dollar
flattening out, and with trade heading into a harvest weekend. The plains look
to trend warmer and drier to push the crop along this week with harvest
starting to expand to the south, while European weather looks little changed.
KC is at a 53-cent discount to Chicago on the July with steady action today,
while Minneapolis is back to a 3 cent premium. The July KC chart support is the
20-day at $4.58, with resistance the upper Bollinger Band at $4.80.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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